1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ruslelena [56]
2 years ago
6

How to find principal without interest

Mathematics
1 answer:
n200080 [17]2 years ago
4 0

Answer:

Step-by-step explanation:

What Is a Principal Amount?

Principal amount on a loan is the amount borrowed. To better understand, let's look at the story of John. When John bought his first car he didn't have enough money to pay for it in cash, so he had to take out a loan. He borrowed $7,500. According to the terms of the loan, John had to pay it off in five years with an interest rate of 10%. The initial amount that he borrowed, or the $7,500, is called the principal amount of the loan. Keep in mind that the principal amount applies to more than just loans. It can also apply to money that is invested or deposited into an account. For example, if you open a savings account with a $700 deposit, the principal amount is $700.

What About Interest?

Principal amount does not include interest, or a rate paid as a fee for borrowing money. To figure out the amount of interest John paid during the five years, you can use the simple interest formula, which is a formula to calculate interest paid only on the principal amount. This formula is:

or interest equals principal amount times interest rate times amount of time. Using this formula, you will find that the amount of interest on John's $7,500 loan was $3,750. So, at the end of five years, he would end up paying a total of $11,250. This does not include any additional fees that may apply.

Principal Amount Formulas

For John's loan, we were given the principal amount and used it to find the amount of interest. What if we already know the interest rate, amount of interest, and amount of time, but we need to find out the principal amount? We can rearrange the interest formula, I = PRT to calculate the principal amount. The new, rearranged formula would be P = I / (RT), which is principal amount equals interest divided by interest rate times the amount of time.

Let's try this out by finding the principal amount of a loan that has a total interest amount of $18,500 and an annual interest rate of 6.5% over 12 years.

To solve, we input the values into the equation, P = I / (RT). This gives us:

P = $18,500 / (0.065 * 12) = $23,718

The principal amount of the loan is $23,718.

(hope this helps can i plz have brainlist :D hehe)

You might be interested in
If f(x)=-x^2 and g(x) = -x^2+4x+5 what is the product
Dimas [21]

Answer:

x^{4} - 4x³ - 5x²

Step-by-step explanation:

-x²(-x² + 4x + 5)         Distribute

x^{4} - 4x³ - 5x²

If this answer is correct, please make me Brainliest!

8 0
3 years ago
How to write 25 thousands 56 ones
lilavasa [31]
You would write it as 25,000 or it would be 0.025
6 0
3 years ago
Read 2 more answers
Smbody can hp me?……….
TiliK225 [7]

Answer: 20, 140, 240

Step-by-step explanation:

6 0
1 year ago
one yard company charges $50 a month to mow and edge a lawn plus $10 an hour for the worker. A second conpany charges $60 a mont
AnnyKZ [126]
The cost of company 1: 10x+50
The cost of company 2: 8x+60
The cost will be the same at:
10x + 50 = 8x + 60 \\ 2x = 10 \\ x = 5
The answer is 5 hours
7 0
3 years ago
Which of the following equations represents direct variation?
liberstina [14]

2=6-3 is the direct variation

4 0
3 years ago
Other questions:
  • What quadrant does sec(theta)>0 and cot(theta)<0 lie in
    12·1 answer
  • ASAP PLEASE HELP ME PLEASE ANYONE .
    13·2 answers
  • Last friday Adam had 22.33. Over the weekend he recieved some money for cleaning the attic. He now has 32. How much money did he
    10·1 answer
  • Algebra pic for reference , thank u so much
    14·1 answer
  • Column A Column B
    11·1 answer
  • (3/4y) (3/4y) (3/4y)
    14·1 answer
  • Sally has 6 boxes of colored pencils only three of the boxes contain 12 colored pencils each .the remaining boxes each contain 2
    11·1 answer
  • How does knowing some constructions help you do other, more complicated constructions
    10·2 answers
  • PLZ HELP (if you don't know how to do it then don't even bother) FRIENDS!!!
    12·1 answer
  • Is the ratios 30:18 equivalent to 5:3 or 10:6 and if so why?ILL GIVE brainless if u answer good plz?!
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!